Asset Management in Integrated Planning and Reporting for Local Governments
Troy Daniels, Project ManagerDepartment of Local Government and Communities
Drivers of Local Government Reform in Western AustraliaLGAB Ensuring the
Future Sustainability of
Communities Report
recommendations (2006)
(2008)WALGA Systemic
Sustainability Study
LGPMC Nationally Consistent
Frameworks on Local Government
Sustainability (2009)
(2010) Reform Steering
Committee Report
Drivers of Local Government Reform in Western Australia
• Estimated local government asset renewal gap = $110 million per annum (Allan, 2012)
• Estimated local government infrastructure renewal backlog = $1.75 billion (Allan, 2012)
• Pressure on local government to increase fees, charges, rates and borrowing
Tackling Asset Management Reform• Integrated Planning and Reporting (IPR) Framework developed in
2010 • Changes to ‘Plan for the Future’ regulations gazetted August 2011• Responded to capacity challenges in the sector• Integrated approach to planning based on meaningful
engagement with the community on significant choices• De-emphasized the annual budget cycle• Recognised diversity of the sector• Enhanced opportunities to engage with other agencies
Asset Management Framework and Guidelines
• Aligns with interstate and international frameworks and asset management practice.
• Developed with the sector through Asset Management Working Group.
• Aims to enhance the sustainable management of local government assets by encouraging a ‘whole of life’ and ‘whole of organisation’ approach to asset management.
Implementing Integrated Planning
• Frameworks• Guidelines• Toolkits• Regulations• Advisory Standard• Website & e-bulletin• Workshops• Master classes
The Local Government Sector Responds
Asset Management Challenges To DateGENERAL GAPS
• IPR alignment
• Cross-organisational responsibility
• Performance measurement
• AM Strategy
• AM Policy
Internal Challenges
Data management Condition and useful life
Service levels O&M, renewal and replacement
strategies
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
64% 64%
55%
32%
N = 22
Asset Management Challenges To DateChallenge What local governments may require help with….
Data management Methods to maintain data appropriately. Methodologies for carrying out consistent asset condition surveys and defect identification. Processes for quantifying maintenance expenditure into reactive and planned maintenance. Processes for and assistance in ‘horizon planning’; capital works justification & prioritisation for
implementing investments in new assets.
Condition and useful life Collection and management of condition data. Robust processes for condition ratings and modelling.
Service levels Determining asset performance targets and current performance. Determining the current utilisation levels of assets and remaining capacity.
O&M, renewal and replacement strategies
Developing formalised process for O&M. Documenting an O&M strategy. Documenting the renewal and replacement strategy. Documenting the capital investment strategy.
The Future of Asset Management in WA
AM Plans Completed.Implementation of AM Improvement Strategies commences.Fair Value accounting adopted.Condition and useful life data collected and complete.
AM Plans Reviewed and renewed where appropriate.Capital investment strategies and decision making criteria set.Monitoring of AM practice commences (through NAF).
AM Improvement Strategies implemented.Data Management improves.Renewal and replacement strategies in place.
Service Levels agreed with community as part of SCP review and renewal.LGs have confidence in setting and assessing achievement against asset performance targets.LG AM Plans inform State funding decisions.
Renewal funding strategies established through LTFPs to address funding gaps .AM practice consistently improving.
2013 – 2015 2016 – 2018 2018 +
The Future of Asset Management in WATimeframe DLGC Activities
Short Term (12-18 months)
• Advice and support• Review of IPR frameworks and guidelines• Review and renewal of IPR Advisory Standard• Update of the Performance Management Framework• Asset management support for country local governments• Support for National Assessment Framework
Medium Term(2-4 years)
• Training for elected members• Asset management support for country local governments• Support for National Assessment Framework• Engagement with State Agencies
Long Term(5 years +)
• Ongoing advice and support• Engagement with State Agencies
Thank you Department of Local Government and Communities
Gordon Stephenson House140 William Street
PERTH WA 6000
GPO Box R1250 PERTH WA 6844
Telephone: (08) 6551 8700http://www.dlgc.wa.gov.au
Integrated Planning enquiries: [email protected]
E1320163